The Nasdaq 100 started to sell off pretty quickly on Thursday as traders had to price in the idea that perhaps the tension between the Americans and the Iranians would continue to be a major problem.
That being said, we have since seen a little bit of bullish behavior and find ourselves trading above the crucial 28,500 level.
Ultimately, this is a market that found the 50-day EMA and then bounced. It's probably worth noting that interest rates have drifted a little bit lower during the trading session on Thursday, and I think you have to accept the fact that perhaps we have a market that is more or less trying to do everything it can to remain bullish, even though there are a lot of things out there that could make it very bearish.
Top Regulated Brokers
Technical Levels and Key Market Drivers
If we break down below the 50-day EMA, then I think it opens up a move down to the 27,000 level, but I don't really look for that to happen easily. That being said, if we see interest rates spiking, that could possibly be a catalyst for that selling pressure. If we rally from here, I think at this point we are looking at the 30,000 level as a potential target.
All things being equal, this is a market that has been very bullish for a while, and I think that is probably going to continue to be the overall attitude of the Nasdaq 100 index. I believe at this point we are trying to do everything we can in order to recover the overall uptrend, but I also recognize that this is a market that is going to be influenced by a lot of external headlines coming out of the Middle East and, of course, the inflation picture in the United States, which just during the session today, we have seen the PPI number coming out hotter than anticipated.
Nonetheless, it seems like everybody is out there trading the artificial intelligence trade and as long as that ends up being the case, I think we probably go higher over the longer term, but that doesn't mean that it's easy. I think ultimately this is a situation where you're looking for short-term pullbacks to be buying opportunities.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.